Investment Thesis
AMS exhibits weak fundamental profitability despite 32.9% revenue growth, with negative operating income (-10.7% margin) and deteriorating cash generation (negative FCF of -5.8M). The company is consuming cash through capital expenditure while failing to convert revenue growth into operating profits, suggesting operational challenges or structural inefficiencies in scaling.
AMS Strengths
- Strong revenue growth of 32.9% year-over-year demonstrates market demand expansion
- Moderate leverage with debt-to-equity ratio of 0.74x provides balance sheet flexibility
- Positive operating cash flow of 3.8M shows some underlying cash generation capability
AMS Risks
- Negative operating margin of -10.7% and negative net margin of -4.5% indicate inability to achieve profitability at scale
- Free cash flow is deeply negative at -5.8M with FCF margin of -28.6%, unsustainable without external financing
- Interest coverage of -1.7x shows insufficient operating income to service debt obligations
- CapEx of 9.6M exceeds operating cash flow, requiring debt/equity financing to fund growth investments
Key Metrics to Watch
- Path to operating profitability and timeline to positive operating margins
- Free cash flow trajectory and sustainability of capital expenditure program
- Gross margin expansion relative to SG&A cost control to demonstrate operational leverage
AMS Financial Metrics
AMS Profitability Ratios
AMS Balance Sheet & Liquidity
AMS 5-Year Financial Trend
5-Year Trend Summary: AMERICAN SHARED HOSPITAL SERVICES's revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.10 reflects profitable operations.
AMS Growth Metrics (YoY)
AMS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $7.0M | -$17.0K | $0.00 |
| Q2 2025 | $7.1M | -$280.0K | $-0.04 |
| Q1 2025 | $5.2M | $119.0K | $0.02 |
| Q3 2024 | $5.1M | $118.0K | $0.02 |
| Q2 2024 | $5.6M | $77.0K | $0.01 |
| Q1 2024 | $4.9M | $119.0K | $0.02 |
| Q3 2023 | $4.8M | $118.0K | $0.02 |
| Q2 2023 | $5.0M | $77.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMS Capital Allocation
AMS SEC Filings
Access official SEC EDGAR filings for AMERICAN SHARED HOSPITAL SERVICES (CIK: 0000744825)